April 26, 2024 (MLN): Towellers Limited's (PSX: TOWL) profits plunged 85.7% YoY in the three months ended March 2024, with its profit after tax falling to just Rs59.17 million [EPS: Rs3.48], compared to a profit of Rs412.36m [EPS: Rs24.26] in the same period last year (SPLY).
THe decline was attributed to significant decline in gross margins during the quarter.
Going by the results, the company's revenue went up by 35.3% YoY to Rs2.55bn as compared to Rs1.88bn in SPLY.
However, the cost of sales surged by 80.3% YoY, worsening the gross profit by 59.9% YoY to Rs242.74m in 1Q2024.
The gross margins worsened to 9.52% as compared to 32.10% in SPLY.
During the review period, other income rose 45.3% YoY to stand at Rs125.33m in 1Q2024 as compared to Rs86.24m in SPLY.
On the expense side, the company observed a rise in administrative expenses by 41.0% YoY while other expenses fell by 65.9% YoY to clock in at Rs139.83m and Rs8.81m respectively during the review period.
The company’s finance cost shrank 87.6% YoY and stood at Rs4.29m as compared to Rs34.62m in SPLY.
On the tax front, the company paid a higher tax worth Rs68.4m against the Rs46.16m paid in the corresponding period of last year, depicting a rise of 48.2% YoY.
| Unconsolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar 24 | Mar 23 | % Change | |
| Sales | 2,550,379 | 1,884,750 | 35.32% |
| Cost of sales | (2,307,637) | (1,279,672) | 80.33% |
| Gross Profit/ (loss) | 242,741 | 605,077 | -59.88% |
| Administrative Expenses | (139,833) | (99,183) | 40.99% |
| Selling And Distribution Expenses | (87,573) | (73,160) | 19.70% |
| Other Income | 125,332 | 86,241 | 45.33% |
| Other Operating Expenses | (8,806) | (25,834) | -65.91% |
| Finance Cost | (4,286) | (34,624) | -87.62% |
| Profit/ (loss) before taxation | 127,576 | 458,519 | -72.18% |
| Taxation | (68,404) | (46,158) | 48.20% |
| Net profit/ (loss) for the period | 59,172 | 412,361 | -85.65% |
| Basic earnings/ (loss) per share | 3.43 | 24.26 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-26T12:59:00+05:00
